STATES OF JERSEY
Sea Transport Policy: Direction to the Harbour Master concerning ferry services
Presented to the States on 27th May 2008
by the Minister for Economic Development
STATES GREFFE
Economic
Development Department
Liberation
Place
St.
Helier
Jersey
JE1 1BB
Tel:
+44 (0)1534 448130
Fax:
+44 (0)1534 712889
|
Captain H. Le Cornu Harbour Master Maritime House La Route de Port Elizabeth St.
Helier JE1
1HB |
30 April 2008 |
Dear Harbour Master,
Harbours (Amendment No. 41) (Jersey) Regulations 200-
These will come into force on 6 May 2008. Accordingly I enclose the following:
1. Direction for the introduction of permits,
2. Policy notice regarding the issue of those permits,
3. Policy notice regarding the negotiation of agreements within the port, and
4. Draft policy understanding between Jersey and Guernsey.
I should like to draw your attention to item 7 of the policy notice regarding permits. This concerns the policy understanding between Jersey and Guernsey. That understanding has been presented to the States of Jersey and has my endorsement. It also has the endorsement of the Guernsey Policy Council. However, it remains in draft form in recognition of the fact that the document is to go the States of Guernsey later this year. In the meantime, it is my wish that you should nevertheless adhere to both item 7 in respect of both the draft inter-island understanding and the duration of permits, to ensure the option to tender remains in accordance with the timescales agreed with Guernsey.
Yours sincerely,
Senator Philip Ozouf
Minister for Economic Development
Direction under Regulation 4(4) of the
Harbours (Jersey) Regulations 1962
To the Harbour Master.
I, the Minister for Economic Development, acting in accordance with Regulation 4(4) of the Harbours (Jersey) Regulations 1962, direct you, acting in accordance with Regulation 4(1) of the Harbours (Jersey) Regulations, to designate – combined passenger and private vehicle ferry services (regardless of whether or not these include the carriage of freight), to be services in a harbour or in territorial waters that may not be provided except with and in accordance with a permit.
The designation is to be as follows:
· For existing relevant ferry services, a permit shall be required as soon as due process has been followed and in any case not later than 21 May 2008.
· For a proposed new relevant ferry service, or a variation to an existing service, a permit shall be required to be effective immediately you make the designation.
Minister for Economic Development
Date…………………………………
Notice under
Regulation 5(6)(a) of the Harbours (Jersey) Regulations 1962
To the
Harbour Master.
I, the Minister for Economic Development, acting in
accordance with Regulation 5(6)(a) of the Harbours (Jersey) Regulation
1962, advise you that the policy of the States on the issue of permits is as
follows –
Combined
passenger and private vehicle car ferry services
1. As far
as is practicable, in granting or refusing permits or imposing terms,
conditions and limitations, the Harbour Master shall aim to maintain and
develop year round, long-term, reliable and robust passenger car ferry
services. These services, (which must include a reasonable winter service)
should be of sufficient quality and frequency to meet the travel needs of
Island residents, the business community and tourists.
2. Providing
the facilities are available at the times requested (and such availability will
not be unreasonably withheld) permits shall be granted to all who apply to
provide a service or make use of a facility and who can demonstrably meet
reasonable and relevant terms, conditions and limitations and policy, safety
and security criteria.
3. Policy
considerations:
Regardless
of whether the application for a permit is for the northern or southern routes,
existing and potential operators who can demonstrate the capability to meet the
criteria of year round, long-term, reliable and robust services, (which must
include a reasonable winter service) may be offered permits of such duration that
are designed to encourage route stability and public confidence. However, such
permits are not to be issued on an exclusive basis.
The
“northern route,” is defined as any service between St Helier and either
Portsmouth, Poole or Weymouth, which may or may not be via Guernsey.
The
northern route is of strategic importance to the Island because this is
Jersey’s main freight supply and logistics link particularly when taken with
changes in provisioning of the Island towards “just in time” methods of supply.
It is also recognised that, in the roll on/roll off market, passenger and car
ferry services are bundled with freight and that the northern route is
currently operated as a network of routes, which may improve market stability.
On
the northern route market stability and a reliable year round service has been
achieved where the operator has provided a fast ferry and Ro/Pax service. It is
believed that each type of service may be important to different segments of
the market where the Ro/Pax service may be more important to the Island’s need
for a year round service and the fast ferry service may be of more importance
to the tourism industry. An applicant who offers a year round service, (which
includes a reasonable winter service) using a traditional Ro/Pax vessel and a
fast ferry service clearly meets these criteria. Other proposals may also do
so, but they will need careful scrutiny.
The
intention is that competition should be managed in passenger and car ferry
markets in such a way as to provide sufficient year round reliable services
that meets the needs of current and prospective transport users.
The
“southern route” is important to the quality of life of Island residents and is
defined as services between Jersey and St. Malo whether or not via
Guernsey. The overarching requirement of the States is that there should be a
year round service on this route and this must include reasonable winter
frequencies.
Services
between St. Helier and other ports – where an application for such a
service is made and there are reasonable grounds to believe that the proposed
service should be considered as part of the northern route (because of the
possible affect on the provision of year round reliable services) then the
policy considerations for the northern route should be taken into account.
4. In
granting a permit, the Harbour Master shall set service level standards which
include that an operator:
·
maintains published
information in the form of a Customer Charter, Terms and Conditions of Carriage
or some other means that, as a minimum, include the effective management of
passengers and their cars in the event of delayed, disrupted or cancelled
sailings;
·
takes reasonable steps
to assist small groups and families to sit together or if this is not possible
it will advise the passengers at the time of booking;
·
provides facilities
allowing access for the disabled on all vessels;
·
in the event that
technical or severe weather problems with a vessel cause delays in excess of
four hours, and without prejudice to any contractual arrangements between the
carrier and a tour operator and customers, will entitle passengers to cancel
their bookings with full refund of fare;
·
will endeavour to
publish its following year’s timetables as soon as possible but at any rate no
later than the end of October of the preceding year. Prior to the publication
of the timetables, customers will be able to reserve space on a passage on the
nearest equivalent date and time, based on expected schedules (this is known as
pre-registration).
Alternatively,
the Company will maintain a rolling annual timetable so that at all times
customers will be able to reserve space on a passage up to a year in advance.
·
will have documented and
published procedures setting out the arrangements for receiving and addressing
passenger complaints and for the management of passengers in the event of
delayed, disrupted or cancelled sailings;
·
undertakes passenger
surveys on a regular basis to test the services delivered with the results of
these surveys, together with a summary analysis of customer communications
being made public;
·
ensures that its public
fare pricing policy does not discriminate on the basis of origin of customer
booking. This means, for example, that two passengers from different locations
and travelling on the same vessel, who had booked at the same time for the same
journey, will pay the same price. However, where a passenger books a package
involving other services or via a tour operator then there may be a price
difference;
·
submits any proposed
increase in maximum public fare levels to the Minister for approval and
provides commercial reasoning for such increases until such time as stable
competition has emerged or it is proven that other effective constraints on
pricing exist;
·
maintains and publishes
a record of vessel performance against schedules.
5. An
applicant unable or unwilling to offer a year-round service on the southern
route or unable to fulfil all the policy considerations for the northern route
shall not automatically be refused a permit. Such a refusal may be justified in
terms of route vulnerability or other Island socio-economic requirements and
the Harbour Master shall first seek the advice of the Minister who in turn may
consult with the JCRA in order to determine if a transparent and non
discriminatory solution can be found that would facilitate both additional
competition and support the States objectives of year round reliable services.
6. Operators
should be aware that applications, which do not conform fully to policy will
take time to evaluate. In such cases it is reasonable to expect that a decision
on an application may take longer than normal. Any delay will be solely to
allow the Minister to take whatever steps are considered necessary to evaluate
the impact of the application on service levels and to consult with other
parties as appropriate.
7. Consideration
of an application shall take account of any policy understanding between Jersey
and Guernsey. In particular, there may be a need to coordinate the commencement
and duration of permits to ensure that the option to tender services remains
available within the timescales agreed between Jersey and Guernsey.
8. Where
an applicant has materially failed to meet relevant policy considerations in
relation to a previously operated service and has been unable or unwilling to
remedy the deficiency in any subsequent period then this would normally be
considered sufficient grounds for refusal. Nevertheless, the Harbour Master
shall first seek the advice of the Minister who in turn may consult with the
JCRA to determine if a transparent and non discriminatory solution can be found
that would allow the permit to be granted and support States objectives of year
round reliable services.
Minister for Economic Development
Date…………………………………
Notice under
Regulation 6(10)(a) of the Harbours (Jersey) Regulations 1962
To the
Harbour Master.
I, the Minister for Economic Development, acting in
accordance with Regulation 6(10)(a) of the Harbours (Jersey) Regulation
1962, advise you that the policy of the States on the negotiating of agreements
is as follows –
1. Agreements
are to be entered into as required as part of the normal commercial practice of
port operations.
2. Agreements
must be in accordance with any relevant States Financial Directions.
3. The
designation, availability and existence of agreements shall in general be
available to any person who requests access to that information. However, the
Harbour Master is not required to publish details unless the Minister
specifically requires him to do so under Regulation 6(3) of the Harbours
(Jersey) Regulations 1962.
4. In
accordance with Regulation 6(8) and insofar as proper commercial
confidentiality will allow, the details of proposed agreements must be made available
for comment to any person who is likely to be affected. Additionally, the
agreements themselves must be made publicly available thereafter on request.
5. Any
dispute between the parties may, in default of agreement between the parties,
be referred to arbitration to be conducted in accordance with the Arbitration
(Jersey) Law 1998, save that two arbitrators (one to be nominated by the
Harbour Master and one by the other party) shall be appointed. No arbitrator or
umpire shall be an officer, servant or agent of the parties and the proper
charges of the arbitrators and any umpire shall be shared equally by the
parties.
6. In
accordance with Article 14 of the Arbitration (Jersey) Law 1998, available
remedies include specific performance.
7. Arbitration
is not available for any matter relating to the issue of Permits, the terms and
conditions of which are governed by Regulation 5 of the Harbours (Jersey)
Regulations 1962.
Minister for Economic Development
Date…………………………………
DRAFT
CHANNEL ISLAND PASSENGER CAR FERRY SEA TRANSPORT POLICY STATEMENT
Changes in the number and type of operators on the sea
routes serving the Islands and with Service Level Agreements either due to
expire or recently expired, an opportunity now presents itself for the two Island
governments to state their joint resolve to provide a coordinated and effective
approach to sea transport.
As a basic policy position, it is believed that, in
the interests of the people of the Islands, the States of Guernsey and the
States of Jersey should share a common aspiration: “to maintain and develop year round, long-term, reliable, robust and
reasonably priced passenger car ferry services. These services should be of
sufficient quality and frequency to meet the travel needs of Island residents,
the business community and tourists.”
However, policy aims can conflict with each other: A
low priced fare may be bought with a consequently lower quality or less
reliable service. The guarantee of a robust service (such as an all-weather
conventional ship available at the same time as a fast ferry) comes at a price.
Unrealistically low fares, high capacity and frequency may result from
competition but be impossible to sustain in the long-term. Both Islands
recognise this inevitable, and to some extent insoluble, dilemma.
Government can guide and oversee matters but there is
always a limit to how much is achievable by overt intervention. A good level of
service and reasonable fares are undoubtedly achieved by a strong relationship
between the shipping operators and their customers and not by government
standing proxy for one party alone. Because of this, the two Islands believe
they will most effectively achieve their sea transport aims by establishing
some overarching parameters and keeping regulatory matters to a minimum.
However, on the UK northern routes, a year round
reliable service is currently being achieved by an operator offering both a
conventional Ro/Pax and fast ferry services. Should a new application be
received for services to and from the UK, there will be value in assessing the
effect that additional competition and expanded capacity could have on the UK
links and whether or not a potential new operator could provide an acceptable
level of services in the event that they became the sole operator.
The Chairman of Guernsey’s External Transport Group
and the Minister for Economic Development in Jersey have agreed that:
1.
In the medium-term
passenger car ferry operators will not be subject to a tender process.
2.
The administrations in
Guernsey and Jersey will work with existing operators to ensure as far as
possible that the Islands’ sea transport needs are adequately served. Remedies
will be sought for identified deficiencies.
3.
Unless there is
demonstrable market or operator failure, neither administration will
pro-actively seek new operators on any existing route[1] in the period
prior to 31 December 2013 but the option to do either of these things or to run
a tender process will be retained and exercised in the event of operator or
market failure.
4.
Notwithstanding the
above, an application from any new operator will be fully evaluated with
particular regard to how the proposal might meet the policy aims of both
Islands.
5.
The decision whether or
not to seek tenders for services from 1 January 2014 will be taken by the two
Islands together. If, to achieve the policy aims, a tender process is believed
necessary on any particular route, incumbent operators will be given eighteen
months notice of the intention to tender.
6.
The Islands believe that
all operators should:
·
maintain published
information in the form of a Customer Charter, Terms and Conditions of Carriage
or some other means, which as a minimum will include the effective management
of passengers and their cars in the event of delayed, disrupted or cancelled
sailings and meet other requirements laid down by the two administrations;
·
address all customer
complaints openly, effectively and swiftly;
·
undertake passenger
surveys on a regular basis to test the services delivered. The results of these
surveys, together with a summary analysis of customer communications will be
made public;
·
seek approval from the
relevant administration for increases in maximum prices and to provide
commercial reasoning for such increases until such time as stable competition
has emerged or it is proven that other effective constraints on pricing exist;
·
maintain and publish a
record of vessel performance against schedules.
7.
The primary mechanisms
that influence fares are the market and actual, or the threat of competition.
Alternatively, the threat of entry, substitution to other modes of transport
and consumer behaviour (choosing not to travel) may act as a sufficient
constraint on prices where direct competition does not exist. The Islands will
maintain the option to further develop local competition law or increase the
use of competition regulatory authorities rather than direct government
intervention should this prove necessary.
8.
Customer complaints not
successfully dealt with by the operators themselves will as far as possible be
addressed by the appropriate bodies such as Trading Standards services.
9.
The mechanisms that each
Island uses to manage the routes, control market access and administer the
harbours will differ. However, the broad policy structure made explicit in
these statements will be adhered to by both administrations.